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Superannuation and retirement planning information

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Home / SMSFs / SMSF pensions

SMSF pensions

Like all super funds, self-managed super funds (SMSFs) can provide you with pension or lump sum benefits in retirement. Retirement is a condition of super release if you have reached your preservation age. Your preservation age is between 55 and 60, depending on your date of birth. Super benefits are tax-free if you’re over the age of 60.

If you start a super pension income stream, you need to transfer funds from your accumulation account to your retirement account to fund your pension. The earnings on these funds are tax-free. You can transfer up to the transfer balance cap (up to $1.6 million) into your retirement account. You need to withdraw a minimum percentage of your retirement account balance each year, which varies, depending on your age.

Transition-to-retirement (TTR) pensions can be commenced once you have reached your preservation age while you’re still working. However, the earnings on funds that support TTR pensions are still taxed at 15%, unlike the funds that support your super pension are if you have retired.

Learn more about the key aspects of SMSF pensions in the following SuperGuide articles:

Commuting an SMSF allocated pension

April 1, 2020

SMSFs: How to start a pension

March 23, 2020

What SMSF trustees need to know about ECPI

March 1, 2020

Definitive guide to the $1.6 million transfer balance cap

January 30, 2020

Proportioning rule and super tax: What it is and why it matters

July 12, 2019

Starting a pension from your super

July 1, 2019

Total Superannuation Balance: When it applies and what is included

May 7, 2019

SMSFs: What are the lump sum withdrawal rules?

March 11, 2019

Set out below are all SuperGuide articles that relate to SMSF pensions.

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Commuting an SMSF allocated pension

April 1, 2020 by Penny Pryor Leave a Comment

Younger retirees might like to consider moving their funds back into accumulation phase for the time being.

Starting an SMSF pension checklist

March 23, 2020 by Penny Pryor Leave a Comment

The following checklist will help you get on top of everything that needs to be when starting an SMSF pension.

SMSFs: How to start a pension

March 23, 2020 by Penny Pryor 1 Comment

One of the benefits of having a self-managed superannuation fund (SMSF) is its ability to pay members an income stream, or account-based pension. Of course any superannuation fund can do this, but paying a pension from an SMSF offers members more control and flexibility.

What SMSF trustees need to know about ECPI

March 1, 2020 by Penny Pryor Leave a Comment

Self-managed superannuation funds offer members some useful advantages when it comes to paying pensions. One such benefit refers to the treatment of income earned on assets that are supporting a pension, called exempt current pension income or ECPI.

SMSFs: What are the lump sum withdrawal rules?

March 11, 2019 by Penny Pryor Leave a Comment

As you reach retirement, you will be considering what you want to do with your superannuation in your self-managed superannuation fund (SMSF). Basically, your fund can pay benefits in the form of a lump sum, an income stream, or a combination of both.

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How super works
Super for beginners
Super rules
Employers guide to super
Super contributions
Super and tax
Accessing super
Super news
Women and super
Super tips and strategies
How-to guides
Super quizzes
Superannuation Q&As
Superannuation glossary
Super funds
Best performing super funds
Super fund rankings
Best performing pension funds
Pension fund rankings
Super fund average returns
Super investing strategies
Comparing super funds
Choosing a super fund
Choosing an investment option
Super fund fees
Insurance and super
Super fund profiles
SMSFs
SMSFs for beginners
SMSF administration
SMSF checklists
SMSF compliance
SMSF investing
SMSF pensions
SMSF strategies
SMSF Q&As
Plan your retirement
Retirement planning for beginners
When should I retire?
How long will I live?
How much super do I need?
Will I get the Age Pension?
How much will I spend in retirement?
Financial advice
Retiring overseas
Preparing for retirement
Retirement planning strategies
Retirement calculators and reckoners
In retirement
Income in retirement
Super lump sums
Super pensions
Age Pension
Working in retirement
Life in retirement
Senior concessions and services
Aged care
Estate planning
Super death benefits
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